Who Pays Capital Gains Tax?

UK-Resident Individuals

If you are resident in the UK for tax purposes, you are liable to CGT on gains arising from the disposal of assets anywhere in the world. This includes selling shares on a foreign stock exchange, disposing of overseas property, or selling an asset in another country.^[1]

Your CGT liability is calculated for each tax year (6 April to 5 April). You are entitled to the Annual Exempt Amount (£3,000 for 2025/26), and you pay CGT only on gains exceeding that threshold.

Trustees

Trustees of a settlement are chargeable to CGT on gains made by the trust. The CGT rules for trusts differ in some important ways:^[2]

• Trustees pay CGT at the higher rate of 24% on all gains (there is no basic-rate band for trusts)
• The Annual Exempt Amount for most trusts is half the individual amount — £1,500 for 2025/26
• If the same settlor has created multiple trusts, the £1,500 is divided equally between them (subject to a minimum of £300 per trust)
• Bare trusts and nominee arrangements are transparent — the beneficiary is treated as making the gain

Personal Representatives

When someone dies, their personal representatives (executors or administrators) may need to pay CGT on gains arising during the administration period — the period from death until the estate is wound up.^[2]

• There is no CGT on death itself — assets pass to the estate at market value on the date of death
• If the personal representatives sell an asset during administration for more than its probate value, CGT arises on that gain
• Personal representatives receive the full individual AEA (£3,000) for the tax year of death and the following two tax years
• They pay CGT at the higher rate of 24% (no basic-rate band applies)

Companies

UK companies do not pay CGT. Instead, chargeable gains made by companies are included in their total taxable profits and charged to Corporation Tax. The main differences are:

Non-UK Residents

Non-UK residents are liable to CGT on:^[3]

• Disposals of UK residential property (from 6 April 2015)
• Disposals of all UK land and property, including commercial (from 6 April 2019)
• Indirect disposals — selling shares in a company that derives 75% or more of its gross asset value from UK land

Non-residents must report UK property disposals within 60 days of completion, regardless of whether a gain or loss arises. They may be able to claim the Annual Exempt Amount if they are eligible under the terms of a double taxation agreement.

Who Is Exempt from CGT?

The following are generally exempt from CGT on some or all of their gains:^[1]

Spouses and Civil Partners

Transfers of assets between spouses or civil partners who are living together are treated on a “no gain no loss” basis. This means:^[4]

• No CGT is charged on the transfer itself
• The receiving spouse takes over the original base cost
• The gain is deferred until the receiving spouse eventually disposes of the asset to a third party

Split-Year Treatment

If you arrive in or leave the UK part-way through a tax year and qualify for “split-year” treatment under the Statutory Residence Test, you are treated as:

• UK resident for the part of the year when you were here — liable on worldwide gains made during that period
• Non-UK resident for the overseas part — liable only on UK property gains (and certain other UK assets) during that period

Further Reading

• What Is Capital Gains Tax? — the basics of CGT and how it works
• CGT Rates (2025/26) — full rate tables for individuals, trustees, and special reliefs
• Non-Resident CGT on UK Property — detailed rules for non-UK residents disposing of UK property
• CGT vs Income Tax — understanding the capital/revenue distinction